74-0110 Spiess Co. Lease •
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/MENDED LEASE
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AGK►'r.i`:I:.\I O •�`J•�i11,i) 1-,t' ',1t', ):.iii E` this loth (l o „nuary
1974 , between the CITY OF ELGIN, ILLINOIS, a home rule municipality, herein-
after called Lessor, and JOSEPH SPIESS C0.•L XY, an Illinois Corporation, its
successors and assigns having its principal office and place of business at
• 35-52 South Grove Avenue, Elgin, Kane County, Illinois, hereinafter called
Lessee:
itBER.EAS, Lessor owns and maintains a certain public street Imown
as Riverside Drive located in Elgin, Kane County, Illinois and a certain
parking facility known as the Riverside Municipal Parking Deck, adjoining
said Riverside Drive; and
WHEREAS, Lessor has determined that it is necessary and desirab'"e
to provide the public with additional parking facilities for activities in
the central business district; and
WHEREAS, Lessee is desirous of obtaining additional parking
facilities for customers of Lessee's retail store and for other members
of the public; and to provide a walkway and entrance for its customers use
frau a proposed parking deck to be erected over Lessors property; and
WHEREAS, both Lessor and Lessee deem it to their matual benefit
and in their best interest that additional parking facilities and improvement
of a portion of the central business district with a pedestrian mall be
provided in order to stabilize the investment of property owners in the
• : central business district of the City of Elgin to arrest the decline of
• property values in said district experienced during the preceding several
years and to promote and encourage the ability of business enterprises in
said central business district to compete successfully with new area and •
regional shopping centers in the trading area .of merchants in the City of
•'E/gin; and .
tUEREAS, Lessor and Lessee have heretofore entered into a certrin
• • V agreement dated June 14, 1972 for the lease of air rights o•le- and above
Riverside Drive and the Riverside Municipal Parking Deck owned by Lessor;
and
REAS, Lessor and Lessee desire to amend said agreement to
alter the design and construction of the parking facility and to promote
the construction of a pedestrian mall in a portion of the central business
district. •
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NOa, TIEREFORE, Lessor and Lessee, for and in consideration of the
covenants andmutual agreements contained herein agree as follows:
Section 1. That a certain lease heretofore entered by the parties
hereto and dated June 14, 1972, by mutual agreement, is hereby cancelled and
declared of no further force and effect.
Section 2. That Lessor hereby does lease and demise to Lessee,
upon the terms and conditions hereinafter set forth, the air rights over and
above the present level of Riverside Drive and the Riverside Tinicipal Parking
Deck, owned and maintained by Lessor, together with certain spaces on and
below the surface of Riverside Drive required to install and erect foundations
and columns to support a parking deck, ramps and appurtenant structures to
be erected over and above said public street and the Riverside Mmicipal
Parking Deck, by Lessee, as hereinafter set forth and such portions of
Riverside Municipal Parking Deck as are reasonably required for the erection
and maintenance of three ramps, one located near the northerly end of said
new parking deck and two at the southerly end, to provide means of. ingress and
egress from said new parking deck. Said demised premises are shown and described
in the attached "Exhi.bit A" which is expressly made a part of this agreement.
Section 3. The Lessee covenants and agrees to pay to the Lessor for
• the rental of such demised premises the sum of One Dollar ($1.00) per year,
payable annually on the first day of February, 1974, and on each anniversary
of such date, during the term of this Lease.
Section 4. The term of this lease shall expire (10 years) after
the date of completion of the parking deck to be constructed by Lessor, as
certified to Lessor by Lessee's architect.
Section 5. Lessee covenants and agrees to cause to be erected in
. that portion of the demised premises, over and above the present Riverside
Mmicipal Parking Deck, an elevated one-level steel and reinforced concrete
parking structure covering an area of approximately 100 feet in width by 600
feet in length, parallel to Riverside Drive and the adjacent grade level parking
. deck. The new structure will commence approximately 24 feet west of the easterly
=line of Riverside Drive with access provided by one ramp north to Chicago Street,
and two ramps south to Grove Avenue, and two pedestrian stairways to grade level
and one pedestrian bridge from the second floor level to the mezzanine level of
the present Joseph C. Spiess Company store, said latter pedestrian bridge being
for the use of customers of said Lessee. •
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Section 6. Said structure shall be made of steel and reinforced
concrete, and shall meet all present provisions of the building and fire codes
of the Lessor. Lessee further ^„reos to provide for such signs, dirocticns,
markings, as are required by the Lessor, for the flow of traffic in and onto
and out of said new parking facility. Lessee shall also provide for such
lighting fixtures on the bottom side of the proposed deck as are required to
furnish a reasonable amount of light for the public using Riverside Drive and
the present Riverside DSanicipal Parking Deck but the cost of all electricity
required in operating said street level lighting facilities shall be borne by
the Lessor, and the Lessor shall also pay for all repairs and maintenance
thereof, once said lighting facilities have been installed. Lessee shall also
provide lighting fixtures for the new parking facility constructed on the
demised premises, in accordance with plans and specifications approved by the
Lessee, and shall provide at its own cost, adequate lighting, as approved by
the Lessor, on the demised premises on a 24-hour per day basis, and shall be
responsible for the repair and maintenance of such electrical facilities as
installed in the new facility.
Section 7. Lessee or its wholly owned subsidiary shall operate said
new parking facility constructed in the demised premises and shall have the
• right to install a gate at the entrances. thereof with a spit-ticket device and
an attendant at the exit thereof to collect any overtime parking fees. Lessee
shall have the right to determine.at all times during the term of this lease
the amount of any charges to be made for the use of said new parking facility
erected in the demised premises, including the right to a certain amount of
free usage for customers of Lessee. The only requirement shall be that after
having once fixed the parking fees, any change in the amounts thereof shall be
preceded by a notification in writing to the Lessor at least 15 days prior to
the effective date thereof. Lessee shall have the right to provide for parking
in the new parkingfacility during certain days and hours of the day it being
presently contemplated that Lessee will provide for such parking during such
days and hours as its store building is open to the public and up to 1/2 hour
' prior to the opening, and up to 1/2 hour following the closing of store, provided
however, that Lessee reserves the right to increase the hours for such parking
as demand warrants additional hours for such use. In the event said new parking
facility erected in the demised premises, shall be damaged by fire, windstorm,
or other casualty, Lessee agrees to make necessary repairs thereto within a
reasonable time from the date of occurrence of any such damage, provided that
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if the facility shall be totally destroyed, or any city code or ordinance
shall require the demolition and substantially the complete reconstruction
thereof, the Lessee shall have, and is hereby given the option, to terminate
this lease by giving Notice in writing to the Lessor of its intent so to do
• within ninety (90) days from the date of such damage, and thereupon this
lease shall terminate and the Lessee shall be relieved from any and all
liability under the terms hereof, with the exception that the Lessee shall be
responsible to restoring at its own cost and expense, Riverside Drive and the
Riverside Municipal Parking Deck to their original condition, as modified by
Lessor's improvement and rearrangement thereof.
Section 8. Lessor agrees to cause Riverside Drive and Riverside
Parking Deck to be improved in accordance with the recommendations of Barton-
Aschmann Associates, Incorporated, attached hereto and made a part hereof and
designated as "Exhibit B" and to pay all costs of such improvement which
shall be completed prior to February 1, 1975. Lessor further agrees to promptly
initiate and pursue measures for the formation of a special service. area as
described in the Constitution of the State of Illinois, 1970 and Public Act 78-901
to finance the preparation of design and engineering plans for the construction
of a pedestrian mall on Grove Avenue from Chicago Street to Fulton Street and
on DuPage Street from Grove Avenue east to Spring Street. In the event the
formation of such special service area is prevented by petition of the required
number of property owners and electors in accordance with Public Act 78-901,
this agreement may be terminated by either party by written notice to the other
within 15 days after notification to Lessee by Lessor that said special area may not
• be formed as a result of the aforesaid petition.
In the event that said special service area is formed or the parties waive
said requirement by failure to terminate this agreement as provided, Lessor
shall initiate appropriate measure to finance the construction of a pedestrian
mall as described above. Such measures may include but are not limited to the
issuance of bonds to be retired by general property taxes levied against property
within the special service area or the formation of a special assessment
district in accordance with the Local Improvement Act. However, City shall not
be obligated if such measures are not successful.
Section 9. It is expressly understood and agreed between the parties
hereto that the Lessee shall not be liable in any manner for any loss of income
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by the Lessor by reason of the permanent removal from the present parking deck
necessitated by reason of the construction of the new parking facility nor for
any loss of income by the Lessor for the temporary rc:oval of parking space and
parking meters in addition to `.hose herein specified during the period of
construction of the new parking facility.
Section 10. The Lessee shall erect and maintain such signs as
. required by Lessor warning the users of the new parking facility as well as
the present T3.uiicipal Parking Deck of heights, including the height between
- the ramp and the floor level above it. Both the Lessee and the Lessor agree
to cooperate in the maintaining and changing of any signs, all so as to facilitate
the use of the new parking structure and the present M.inicipal Parking Deck.
Lessee shall have the right to remove during construction of the new parking
facility all parking meters on the present parking deck as may be required
during construction and agrees to replace the same (excepting only those which
Jaye been permanently lost for such use as hereinabove provided) , at Lessee's
own cost.
Section 11. Lessee will not permit any mechanic's lien or liens to be
`placed upon the Premises or any building or improvement thereon during the term
hereof, and in case of the filing of any such lien Lessee will promptly pay
same, or post a bond guaranteeing payment of said liens unless judicially
determined not to be owed. If default in payment thereof shall continue for
thirty (30) days after written notice thereof from Lessor to the Lessee, the
Lessor shall have the right and privilege at Lessor's option of paying the
same Or any portion thereof without inquiry as to the validity thereof, and any
amounts so paid, including expenses and interest shall be so much additional
indebtedness hereunder due from Lessee to Lessor and shall be repaid to Lessor
immediately on rendition of bill therefor.
Section 12. The Lessee agrees to proceed with the construction of the
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*deck structure in accordance with plans and-specifications which have been
prepared by Lessee and approved by the Lessor. Lessee shall award contracts for
( the construction of said deck no later than 15 days after Lessor has awarded
contracts for the construction of the improvements to Riverside Drive. Once
' contracts are awarded both Lessor and Lessee will proceed with all reasonable
diligence to promptly complete the construction of both the Riverside Drive and
- parking deck improvements. Anything herein to the contrary notwithstanding,
however, Lessee shall not be responsible for the cost of such deck improvements
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in excess of $639,289.66, and if the cost of such improvement (prior to the
awarding of contracts therefor) appears to exceed such amount, Lessee may
terminate this lease without liability unless Lessor agrees to reimburse Lessee
for the amount in excess thereof.
Section 13. The Lessee agrees to proceed to construct the parking
deck structure in accordance with a plan of development, to be prepared by
the Lessee and subject to approval by Lessor, as to design and materials to
. be used. The total product shall be completed by February 1, 1975. The provi-
sions of this lease agreement shall be a covenant running with the land.
Section 14. The Lessor shall at all times have full access during
construction and during the term of the Lease to examine said facility and .
to see that Lessee is in full compliance with the terms of this Lease. All •
construction work shall be subject to inspection and approval by the City
• Engineer of the City of Elgin to determine compliance with applicable codes.
Section 15. At such time as Lessor and Lessee both commence con-
struction of the parking deck and Riverside Drive improvements, Lessee shall
sell to Lessor and Lessor shall purchase from Lessee the southerly 44' of
, Lot 14 and the northerly 44' of Lot 15 in Block 21 of the original Town of
Elgin, on the east side of the Fox River, in the City of Elgin, Kane County,
Illinois, for a purchase price of $139,289.66 to be paid at closing, which
shall occur upon five days notice from Lessee to Lessor. At closing Lessee
shall convey merchantable title of the property to Lessor together with an
• assignment of Lessees interest in a certain lease dated July 14, 1956 between
Ralph W. Crocker, et al as Lessor and Joseph C. Spiess Company as Lessee
affecting the northerly 22' of Lot 14 in Block 21 of the original Town of
Elgin. Lessor shall assume all of Lessee's obligations under said lease of
July 14, 1956. The purchase price to be paid for this property by Lessor to
Lessee shall be net to Lessee with all expenses of the sale, including title
costs, survey and documentary tax stamp costs all being paid by Lessor; property
taxes on said property shall be prorated to the date of sale, based upon taxes
for the preceeding year. • ;�
Section 16. Anything herein to the contrary notwithstanding, if
Lessor shall not commence construction of the Riverside Drive improvements,
before August 1, 1974, Lessee at its option may terminate this Lease without
further liability.
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Section 17. Within thirty days after execution of this agreement,
Lessee shall deposit with a mutually acceptable bank as escrowee the sum of
$250,000 in escrow to assure full and satisfactory performance by Lessee of
its obligations under Sections 5 and 6 to construct the improvements upon
the demised premises. Lessee shall also deposit the proceeds of the sale
described in Section 15 when received in said escrow account upon receipt.
The amounts deposited in such escrow shall be dispersed from time to time
only upon direction of Lessee for expenses incurred by Lessee in connection
with the construction of the said improvements upon the demised premises, and
provided, however, that not less than fifty thousand dollars ($50,000) shall be
retained in said escrow account to pay the final construction costs of such improve-
ments, or if such construction shall not occur under the terms of this agreement,
the proceeds shall be refunded to Lessee. Such escrow deposit may be placed in an
interest bearing bank account or certificates of deposit as directed by Lessee and
the earnings on such sums shall be paid to Lessee during said escrow.
Section 18. Prior to commencement of any construction hereunder,
Lessee shall furnish a corporate surety bond, issued by a surety company
licensed to transact business in the State of Illinois, with Lessee as principal,
' and said company as Surety, and Lessor as obligee, in the amount of the estimated
cost of completed construction, guaranteeing payment for all materials, provisions,
• provender, supplies and equipment held in, upon, for or about the performance
• of said construction work or for labor done thereon of any kind whatsoever and
protecting City from any and all liability, loss, or damages arising from failure
to make such payment.
Section 19. All alterations, additions and improvements made in, upon
• and over the premises shall be the property of the Lessor and remain and be
- surrendered with the premises free of any claims of Lessee.
Section 20. Lessee, at the expense of Lessee, shall keep in force,
during the term of this lease, insurance, issued by responsible insurance
companies and in form acceptable to Lessor, for the protection of Lessor
against all liabilities, actions, suits, judgments, costs, damages and expenses
which may accrue against, be charged to, or recovered from Lessor by reason
of damage to the property of, injury or death of any person or persons on
account of any matter or thing which may occur on the demised premises, in
a policy or policies in the amount of 2,300,000 dollars with respect to any
one person and 2,300,000 dollars with respect to any one accident or disaster and
2,300,000 dollars with respect to property damage.
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Section 21. Lessee shall pay any and all taxes or special assess-
ments which may be levied or assessed upon the demised premises leased here-
under, during th,.: term of this lu ase.
Section 22. The said new parking facility constructed in the demised
premises shall be and become the property of the Lessee up to the data of the
• expiration of the lease, whereupon said facility shall become the property of
the Lessor. All parking fees and charges received for the use of the new
• - parking facility during the term of this lease, shall be the sole property
of the Lessee and no part thereof shall belong to the Lessor.
Section 23. All the obligations of the parties hereto are made
expressly conditioned upon the Lessee obtaining from the Director of Waterways
of the State of Illinois, and any such other governmental agency as may have
jurisdiction in the ratter, of legal consent and approval of the right to extend
the parking facility over the Fox River to the West of the Westerly line of
the present parking deck, and the erection in the river and the river bed of
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• such footings, columns, and other structures to provide support for said new
parking facility.
CI OF ELGIN n •
ry7)
By
• I. i'elson; CityManager
Attest: •
gar A. Clink, City Clerk
• • ♦ JOSEPH SPIESS COMPANY, an Illinois
corporation •
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• • sy t��syrrFF�t
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Attest: - .
• e:retary
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ASSIGNMENT OF LEASE
FOR VALUE RECEIVED, the undersigned hereby assigns to
the 'City of Elgin, all its right, title and interest in and to a
certain lease dated July 14, 1956 between Joseph C. Spiess Company,
as Lessee, and Ralph W. Crocker, et al, as Lessor, affecting the
Northerly 22 feet of Lot 14 in Block 21 of the Original Town of
Elgin. The City of Elgin agrees to assume all of the obligations
of Lessee under said Lease.
• JOSEPH C. SPIESS COMPANY
By: ((l( -
1
ober Js% Stettner
ATTEST: �
• Harold H. Jo .
CIF ELGIN
By: �
I,eoNelson -
. City Manager
ATTEST:
Margaret A. Mink,
City Clerk
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